Standard Sales Based Charge (FR05.1)
Use Standard Sales Based Charge (FR05.1) define and maintain a standard sales based charge in the Franchise Management application.
A standard sales based charge is any charge that is based on a percentage of sales, such as royalties, rent, national advertising, local advertising cooperatives, and secondary advertising cooperatives.
Before you add a charge, make sure that companies and their calendars as well as company options are defined. Also, ensure that the applicable accounting units, accounts, and subaccounts are defined in the General Ledger application and that all applicable activities and account categories are defined in .
More Information
After you define this charge, you can add it to a standard contract in FR08.1 (Standard Contract) or to a customer contract in FR15.1 (Customer Contract Charges). If you add a standard sales based charge to FR02.1 or FR15.1, the information defined on this form defaults into the standard contract or customer contract.
If the charge has principal and interest components, use FR06.1 (Standard Note Based Charge) to define the charge. If the charge is not considered a sales based or note based charge, use FR07.1 (Standard Special Charge).